As with nearly every ill wind, some folks may be able to find some good. My kid, her husband and my exceptionally bright and good looking grandson (great genes, what can I say?) are going to be able to buy a home in SoCal this year because values are so depressed and they are still earning income. They can buy for much less than the build-costs. Here in Florida, my homeowner's insurance cites a much higher replacement value on my home than I could ever get on the open market were I to try and sell it. That way, they can get a higher premium from me. They do the same thing on a rental property I own--rebuilding would cost almost twice what I could get if I sold. And it's a leap of faith to think I could actually sell. Only things moving around here seem to be foreclosures and bank owned--and that is, I believe, keeping the market artificially lower than it might otherwise be. It's to the point where I would do much better with a totally destructive fire. I think I'd just accept the check, try and sell the lot, and move to Texas with the proceeds. Fortunately or unfortunately, I own all my real estate free and clear except for taxes and insurance, and the rentals are still bringing in some income. But, I'd love to get out from under and leave the state. What I know for sure is this mess has decimated my planned retirement.